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NATIONSBANK ANNOUNCES FIRST QUARTER EARNINGS

 NATIONSBANK ANNOUNCES FIRST QUARTER EARNINGS
 CHARLOTTE, N.C., April 20 /PRNewswire/ -- NationsBank Corporation


(NYSE: NB) today reported net income for the first quarter of 1992 of $310 million, up 95 percent from $159 million in the first quarter of 1991. Earnings per common share in this year's first quarter rose 83 percent to $1.28 compared to $.70 in the year-ago quarter.
 "We are both pleased and encouraged by the results from our first-ever quarter of operations as NationsBank," said Hugh McColl, president and CEO. "We were able to generate solid revenue growth despite the weak economic environment and the complex merger-consolidation process that is underway. And this process, currently running ahead of schedule, provided some initial cost-saving benefits during the quarter that, when combined with strong internal cost-control measures, kept expense growth at a minimum during the quarter. In addition, we were particularly pleased that nonperforming assets declined almost $100 million from year-end levels."
 "We enhanced our already strong capital position with a $353-million common equity offering in the first quarter," continued McColl. "Our well-capitalized and liquid balance sheet, along with our strong presence in attractive markets, leaves us well- positioned to capitalize on the economic recovery that is showing signs of being underway."
 Total shareholders' equity rose 14 percent from year-ago levels to $7.1 billion on March 31, 1992 and stood at a healthy 6.33 percent of total assets. Return on common shareholders' equity was a strong 18.59 percent in the first quarter. Book value per common share was $28.32 at the end of the first quarter, up 5 percent from book value of $27.03 at December 31, 1991. Total market capitalization at March 31, 1992 was $11.0 billion, up 18 percent from $9.4 billion at year-end.
 Using final 1992 guidelines, Tier 1 risk-based capital was $6.5 billion on March 31, 1992, or 7.17 percent of risk-weighted assets, above the minimum regulatory guideline of 4.0 percent. Total capital of $10.0 billion represented 11.12 percent of risk- weighted assets at the end of the quarter, exceeding the minimum guideline of 8.0 percent.
 Taxable-equivalent net interest income of $1.012 billion was 3 percent higher than in the year-ago quarter. This growth resulted from a higher net interest margin, 3.89 percent versus 3.81 percent, and a 1-percent increase in average earning assets to $104.4 billion.
 Reflective of the weak economy, average loans and leases in the first quarter of 1992 dropped 3 percent, relative to the same quarter in 1991, to $67.8 billion.
 Average deposits in the first quarter of 1992 were $85.4 billion, down 2 percent from the year-ago quarter. Importantly, customer- based deposits made up 92 percent of this total, standing at $78.9 billion, only 1 percent below levels in the first quarter of 1991. This relative stability in customer-based deposit levels is encouraging given the large drop in deposit rates over the past year.
 NationsBank continues to have a liquid balance sheet, ending the quarter with a low 81-percent loan-to-deposit ratio. This leaves the company well-positioned with low-cost, stable deposits available to fund loan growth as economic activity picks up.
 Noninterest income rose to $471 million, a 12-percent increase relative to the year-ago quarter. This strong growth, in the face of a poor economic environment, reflects the relative strength of fee-based businesses at NationsBank. Bank card income, deposit fees, and brokerage income were key contributors to the year-over-year growth.
 Gains from the sale of investment securities were $204 million in the first quarter of 1992 compared to $76 million in the same period of 1991. The 1992 gains resulted from balance sheet management strategies to reposition the components and estimated average maturity of the investment securities portfolio at a time when the portfolio contained substantial appreciation. These strategies included the determination by management at March 31, 1992, that certain securities would be sold during the second quarter of 1992 in order to complete this repositioning and minimize the corporation's risk to a rising interest rate environment. As such, $6.0 billion of securities have been classified as assets held for sale at March 31, 1992. This leaves an investment securities portfolio at quarter-end of $17.9 billion. Aggregate unrealized appreciation at March 31, 1992 was $9 million in the securities held for sale and $220 million in the investment securities portfolio.
 The company held noninterest expense growth to less than 2 percent, $954 million versus $936 million, in the first quarter of 1992 relative to the year-ago quarter. FDIC insurance premiums accounted for approximately 50 percent of this increase.
 Credit quality showed some signs of improvement in the first quarter, led by the decline in nonperforming asset levels. However, the company continued to take substantial charge-offs and further strengthened the reserve for credit losses.
 The allowance for credit losses stood at $1.656 billion on March 31, 1992, equal to 2.43 percent of net loans, leases and factored accounts receivable. This was $212 million higher than the year- ago allowance and reflected a $51-million increase compared to the December 31, 1991 allowance of $1.605 billion, or 2.32 percent of net loans, leases and factored receivables.
 Net charge-offs in the first quarter were $214 million, or 1.25 percent of average loans, leases and factored receivables, compared to first quarter 1991 net charge-offs of $220 million, or 1.26 percent of average loans, leases and factored receivables.
 Provision expense was $265 million in the first quarter of this year, down from $333 million in the year-ago quarter. Other real estate owned expense was $61 million in the first quarter versus $13 million in the year-ago quarter. This increase reflected write-downs associated with declines in real estate values and administrative costs of managing a higher level of foreclosed properties.
 Nonperforming loans declined $78 million during the quarter to $1.883 billion on March 31, 1992. The allowance for credit losses represented 88 percent of these loans at quarter-end, up from 82 percent at the end of 1991.
 Including $823 million of other real estate owned, total nonperforming assets were $2.706 billion at the end of the first quarter, or 3.92 percent of net loans, leases, factored receivables and other real estate owned. This represented a $98-million decline from nonperforming asset levels of $2.804 billion at the end of 1991.
 NationsBank Corporation is the fourth largest banking company in the U.S. with total assets of $113 billion and with more than 1800 banking centers in ten states and the District of Columbia.
 NationsBank Corporation Financial Highlights
 Three Months
 Ended Mar 31:
 1992 1991
 Financial Summary
 (In millions except per-share data)
 Net income $310 $159
 Primary earnings per
 common share 1.28 .70
 Average primary common
 shares outstanding 235.873 216.391
 Price per share of common
 stock at period end $45 1/2 $34 5/8
 Common dividends paid 89 91
 Common dividends paid
 per share (A) .37 .37
 Preferred dividends paid 8 8
 Earnings Summary (Taxable-equivalent in millions)
 Net interest income $1,012 $985
 Provision for credit
 losses (265) (333)
 Investment securities gains 204 76
 Noninterest income 471 422
 Other real estate owned expense (61) (13)
 Noninterest expense (954) (936)
 Income before taxes 407 201
 Income taxes - including
 FTE adjustment(B) (97) (42)
 Net income $310 $159
 (B) FTE adjustment $25 $36
 Average Balance Sheet Summary
 (In billions)
 Loans and leases, net $67.833 $70.130
 Investment securities 24.353 27.082
 Earning assets 104.372 103.570
 Total assets 117.088 119.780
 Total assets (C) 117.088 116.267
 Noninterest-bearing deposits 14.855 13.965
 Interest-bearing deposits 70.542 73.053
 Total deposits 85.397 87.018
 Shareholders' equity 6.799 6.254
 Common shareholders' equity 6.533 5.932
 Other Financial Data
 Net interest yield 3.89pct. 3.8pct.
 Return on avg. assets (C) 1.06 .55
 Return on avg. common equity 18.59 10.88
 Gross charge-offs (millions) $259 $241
 Net charge-offs 214 220
 pct. of average loans and
 leases, net 1.25pct. 1.26pct.
 (A) 1991 dividend per common share based on NationsBank historical amount
 (C) Based upon assets excluding Special Asset Division of NationsBank Texas
 Mar 31:
 1992 1991
 Balance Sheet Summary (In billions)
 Loans, leases and factored
 accounts receivable, net $68.276 $71.186
 Investment securities 17.852 26.858
 Earning assets 100.001 100.548
 Total assets 112.741 115.798
 Total assets (C) 112.741 112.376
 Noninterest-bearing deposits 15.339 14.011
 Interest-bearing deposits 69.390 73.581
 Total deposits 84.729 87.592
 Shareholders' equity 7.131 6.259
 Common shareholders' equity 6.866 6.000
 Per common share (not in billions) 28.32 27.59
 Risk-based capital - Final
 guidelines:
 Tier 1 capital $6.451 $5.599
 Tier 1 capital ratio 7.17pct. 6.01pct.
 Total capital $10.010 $8.997
 Total capital ratio 11.12pct. 9.66pct.
 Leverage ratio 5.59pct. 5.02pct.
 Primary common shares outstanding
 (in millions) 242.481 217.496
 Allowance for credit losses
 (in millions) $1656 $1444
 Allowance as pct. of net loans,
 leases, and factored accounts
 receivable 2.43pct. 2.03pct.
 Allowance for credit losses
 as pct. of nonperforming loans 87.94pct. 94.19pct.
 Nonperforming loans (in millions) $1883 $1533
 Nonperforming assets (in
 millions) $2706 $2140
 Nonperforming assets as pct. of:
 Total assets (C) 2.40pct. 1.90pct.
 Net loans, leases, factored
 accounts receivable and other
 real estate owned 3.92pct. 2.98pct.
 Full-time equivalent headcount 55,714 59,465
 Banking centers 1,850 N/A
 (C) Based upon assets excluding Special Asset Division of NationsBank Texas
 -0- 4/20/92
 /CONTACT: (Media) Rusty Page, 704-386-5667, or (Analysts) Susan Carr, 704-386-8059, or Mark McCall, 704-386-8465, all of NationsBank Corporation/
 (NB) CO: NationsBank Corporation ST: North Carolina, Georgia, Florida, Texas IN: FIN SU: ERN


CM -- CH006 -- 9952 04/20/92 10:32 EDT
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Date:Apr 20, 1992
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